Is there a consistent return on real estate/condos in Philippines?

70k USD is less than 3 million pesos, you barely can get a 30 sqm unit, that its rent cannot be over 15k in anyway, which means 300 USD , the only way to earn more is :
- to get a foreigner who wants to pay more if you can provide an improved unit ( like fully furnished, with high end furniture, with parking ( at least 10k USD)
- to make a commercial rent, like bed space or shared accommodation, which will destroy your unit and make it reselling value dropped.
The only houses with increasing prices are those in the business districts, and where your 70k USD cannot even effort a studio, or house and lot style, because the price of the land would increase, but you are not eligible as a foreigner to buy a land at all
The average life of a building in the Philippines is 20-30 years, so if you will make 0.5 % monthly, you need 200 months or 17 years to get back your money, while you can also get 10% deposit interest yearly in a bank
- your only hope is that the rent will increase with the inflation which would give you a higher rent in the coming years
- if you will live in the Philippines, it is better to buy than to rent, since you will live in your unit, without the Hussle of the unit owners who will double the rent just because you a canadian, but if you want to invest while you are abroad, that is a very bad idea,  because everyone who will help you to manage the unit will get his benefit before yours.

Actually, I am not looking to invest, I am looking to buy a condo to live in.  However, I want to know if, when I go to sell it 5-7 years later, will it be worth more, the same or less than what I paid for it.  Even if I can sell it for the same amount I paid for it, that would give me money to buy a new home when I return to USA.  However, If I pay $4,000,000 php and am forced to sell for $2,000,000 php 7 years later, I have to take that into account in my budget. 

Thank you for your response!

Rob

I know this post is old but what your saying is not entirely accurate. You can rent and it will take you 12 years to spend say 100k US dollars n rent money.

That same 100k say in an investment account will make you 36k in that same 12 years if that’s all you have at 3 percent....  so renting long term will save you tons of cash. That’s all based on 700 a month for rent which you can find much much cheaper if you are frugal.

I now live in Philippines permanently and unless you just have say an extra 100k I would not buy. For a property here to increase in value you need a beach lot and house and in a good area you can’t touch a 500 square meter or bigger for less than 200k let’s say on bohol.

Your looking at 80k for a 200 square meter lot only which is barely big enough to build a decent house on. I hear property and houses are cheap on Mindanao!! 
Lol. Don’t go there!

Over all I agree with your post.  Some of your calculation are conservative.

Many people buy properties for there wife's security when they pass away.  It is the only reason I would buy.  Then without the wife of having benefits of investing in your country of origin then property may be a good investment in the Philippines.

If I was single why would I buy at all, if something dramatic was to change in the PI, and it can (just look at HK) then it is good to have the option to pack the bags and go to another country.

Agree with above statements.

I will never buy property in the Philippines when I can rent so inexpensively and invest securely with good returns in my home country. My Filipina GF will get a percentage of my estate in the event I die and the executor has instructions on how to get it to her, so I don't need to complicate my life and buy property for her now.

I have observed that it can take a long time to sell real estate in the PI and there are many impediments to transparent real estate transactions such as title issues, etc.  Everyone wants a piece of the pie. Not to mention, as PEJ stated, having the flexibility to move on if it becomes necessary is priceless.

Rent is mortgage you are paying for another person and best be avoided.  There are exceptions like if you are still recon'ing an area, or purposely live like a butterfly so to speak moving from 1 place to the other  short term.

Re the old question, it is the same for any country -- Philippines, US, wherever.  Pick a place that is up and coming while the price is still relatively low.  Then watch it grow over time.   

Also, remember, rent is in perpetuity.   Mortgage is rent with an end date.

I bought my place for 1.3M php 18 months ago, new construction. The same complex is selling their new construction for 1.7M now.

I renovated it (the layout was stupid and inefficient) and furnished it with quality appliances and two televisions (about 500k  in upgrades)  and it's been rented out for 20k/month.

I'm selling it now, which is a new experience. A lot of Filipino's believe it should sell for less than a new unit because it's "used". I'm not in a rush, but I'll update this thread when it sells. With lockdowns ending foreigners will hopefully start buying again.

What area city and barangy name .how much selling for and few pictures would help.

imuscavitecondo wrote:

I bought my place for 1.3M php 18 months ago, new construction. The same complex is selling their new construction for 1.7M now.

I renovated it (the layout was stupid and inefficient) and furnished it with quality appliances and two televisions (about 500k  in upgrades)  and it's been rented out for 20k/month.

I'm selling it now, which is a new experience. A lot of Filipino's believe it should sell for less than a new unit because it's "used". I'm not in a rush, but I'll update this thread when it sells. With lockdowns ending foreigners will hopefully start buying again.

I suppouse 20k minus condo fee?    You talk yourself about renovating and appliances costs.
So if you dont earn by selling with profit, its bad compared to other alternatives.   
It can be very hard to get buyer in the Philippines.  E g before covid one connected house in foreign standard in a subdivision at Cebu island, the foreign owner wanted to get his invested money back, but no one interested at that price, so he gave up, married a Filipina and let her inherit it when he died.

Its rather easy to find alternatives with much better percentage potential than that.
E g - all investments have some risk, but an alternative within agroforestry with tiny risk at least double the investment in 10-15 years, probably 3-4 times the money  to the investor with a good handler. I know a such good handler team if someone is interested.
The team leader talked recently about he has found two extra good objects for sale with even better potential by shorter time to payout. He hasnt made any detailed inspection of these big real estates, but is ready to do so if someone is interested. 
An other business type I dont know much about, but according to two sourses it seem investor can earn around 15% per year, payout each 6 - 8 month.  Same team had got offer at one such for sale too. 
Both these types involve investment in real estates too, but to be used for production instead of rent out.

Depends on the area. With all the infrastructures and improvements going on in the Philippines that will connect all the islands and make travel a lot faster, the economy and value will go up. Not to mention the abolishment of 60-40 law that will bring in more money into the Philippines. I personally think this is the best time to invest there.

nicoj36 wrote:

Depends on the area. With all the infrastructures and improvements going on in the Philippines that will connect all the islands and make travel a lot faster, the economy and value will go up. Not to mention the abolishment of 60-40 law that will bring in more money into the Philippines. I personally think this is the best time to invest there.

Yes.  Except for some overheated parts - if it havent gone down much there too because of covid - there are many real estates  for sale cheap even with what some sellers call "covid price".   
Although some ask crazy high prices in not hot parts too. I dont know if they realy believe thats a relevant price. Perhaps they have been fooled to believe it is by some, who have sold similar, have MADE UP to show better than they are much higher price than they realy got. (Its rather common people try to show much better than the truth, many even make fanct parties they dont afford even being in dept.) Or perhaps someone in the neighbourhood realy sold very expensive by some stupid foreigner paid far to much        
I have seen some asking even 50 times higher than others asked/got for similar!!!  Perhaps they had missunderstood believing someone sold for X dollars, when it in reality was same figueres  but pesos?   

and what are the requirements to rent the condo after you buy it? do I need any permits or licenses. do I need to register as a business? what rental income taxes should be paid?

@wadja Following your logic there is little need for me to own.  And I agree wholeheartedly. At 66 and living retired in PH, it seems better to pay the rent.  My rent is P8000 for a new nice 2/2. At 1.5 million pesos for average home with problems, I can rent for 17 years to use that same 1.5M. As it is now all I pay is rent. If it breaks I’m not responsible. No upkeep.  I’ve owned  6 homes in my past and it is truly something that I do not want to do again.